Online Bookmaker Betway Parent Super Group Bets On $5.1 Billion SPAC Deal
Super Group, the parent of online betting company Betway, is preparing to go public in a deal that would value Super Group at roughly $5.1 billion, Reuters reported.
Super Group intends to execute the public offering by merging with a special purpose acquisition company (SPAC) called Sports Entertainment Acquisition Corp., Reuters reported, citing unnamed sources. SPACs, also known as blank-check companies, are publicly traded entities that exist only to help take merger partners public.
According to Reuters, Betway is expanding from Europe, where it has operated for the most part, to the United States. When Betway’s previously agreed-to acquisition of Digital Gaming Corp. is complete, Betway will operate online sports gambling in 10 states.
Describing its business ambitions in a March 31 filing with the federal Securities and Exchange Commission (SEC), Sports Entertainment Acquisition Corp. wrote: “We believe that many companies operating in the sports and entertainment sectors, and the technology and service areas that enable them, have characteristics that make them attractive targets. Specifically, many companies in these sectors achieve high growth and have the potential to serve as platforms that can be utilized for future acquisitions. These businesses often emerge within the ecosystems of the owners of content and other intellectual property, and require different applications of capital and specific management experiences to grow. The application of third-party capital and expertise has the potential to enable growth outside of the original focus area.”
With the SPAC transaction, Sports Entertainment Executive Chairman Eric Grubman, a former National Football League (NFL) executive, will become chairman of Super Group, Reuters reported. Additionally, Sports Entertainment CEO John Collins, a former chief operating officer of the National Hockey League (NHL), will take a seat on Super Group’s board.
According to Reuters, Betway offers a platform that allows betting on sporting events around the world, including Premier League soccer in the United Kingdom and cricket in the Indian Premier League.
Sports Entertainment Acquisition went public in October at a valuation of $400 million, Reuters reported.
Sports gambling became legal in the United States in 2018 and surged during the pandemic, PYMNTS reported. Companies in the space have been working on plans to sustain their heightened popularity after COVID-19 restrictions, such as the closing of brick-and-mortar casinos, are lifted.
One change that could lead to increased popularity would be the ability of sports gambling companies to pay gamblers almost instantly through cards, industry executives said.